HashKey Capital Launches Asia's First XRP Tracker Fund—with Ripple as an Early Investor.

HashKey Capital has launched the HashKey XRP Tracker Fund, the first investment vehicle in Asia aimed at tracking XRP's performance.

HashKey Capital has launched Asia's first XRP tracker fund, with an early investment from Ripple, to provide professional investors with a new way to gain exposure to the third-largest token by market capitalization.

The initiative marks a significant step in expanding institutional access to XRP, known for its role in cross-border payments and blockchain integration.

Highlighting the partnership, HashKey Capital posted on X: "Announcing Asia's first XRP Tracker Fund, designed for professional investors and offering exposure to XRP without requiring direct token ownership, trading, or custody.

"This expands HashKey Capital's digital asset offerings and showcases its commitment to converging traditional finance with blockchain-based financial services."

The HashKey XRP Tracker Fund, a private offering for professional investors, allows monthly subscriptions and redemptions through cash or in-kind contributions.

The fund is benchmarked by CF Benchmarks, a recognized index provider with a track record of supporting ETF products across the United States and Asia Pacific.

This new tracker fund is HashKey Capital's third product, following the earlier launch of its Bitcoin and Ethereum ETFs, traded under the ticker 3008.HK and 3009.HK, respectively.

The XRP Tracker Fund provides a channel for institutional capital to enter the regulated crypto market in Asia, streamlining access to XRP.

The fund's structured exposure to XRP is designed to appeal to investors seeking compliance, regulatory clarity, and integration with traditional asset management practices.

While the fund is currently structured as a compartmentalized feeder fund, HashKey Capital has plans to apply for conversion into an ETF, aiming for a launch in the second half of 2024, pending regulatory approvals.

This initiative aligns with broader efforts to expand institutional-grade investment products within the burgeoning Web3 ecosystem.

As an early investor in the fund, Ripple will contribute to the fund's initial capital and support its ongoing operations.

This partnership between Ripple and HashKey Capital includes broader plans for collaboration on blockchain-based investment solutions, enterprise blockchain adoption, and cross-border financial infrastructure.

HashKey Capital will leverage its network of financial institutions, regulators, and investors across Asia to support Ripple's regional expansion. Both parties are exploring the development of tokenized investment products, such as a money market fund (MMF) deployed on the XRP Ledger.

This partnership aligns with Ripple's focus on advancing use cases for XRP in cross-border payments and tokenization and HashKey Capital's efforts to build a regulated and professional crypto asset management ecosystem.

Industry participants have noted the significance of the XRP Tracker Fund in advancing institutional adoption of digital assets across Asia.

By offering a regulated and transparent investment product, HashKey Capital aims to address the key concerns of institutional investors, enabling them to participate in the digital asset market with confidence.

Hank Huang, CEO of Kronos Research, described the fund as a pivotal development for the region in facilitating meaningful capital inflows into digital assets through professional investment vehicles.

XRP has maintained its utility in enabling cross-border payments at lower costs and faster settlement times compared to traditional systems like SWIFT.

The XRP Ledger has also seen increased interest in tokenizing real-world assets (RWAs) expand its enterprises and financial institutions.

HashKey Capital has expressed its intent to convert the XRP Tracker Fund into a full-fledged exchange-traded fund (ETF), subject to regulatory approvals, which would further enhance the accessibility and liquidity of XRP for institutional investors in the Asia-Pacific region.

This initiative is part of a broader strategy to expand HashKey's digital asset offerings and solidify its role in converging traditional finance and decentralized technologies.

The fund aims to attract attention from asset managers, hedge funds, and financial institutions to secure and compliant exposure to XRP.

HashKey Capital's continued collaboration with Ripple will focus on scalable, regulated offerings that align with the growing institutional interest in the crypto sector.

This partnership signifies a shared vision for open and efficient financial systems.